AUSTRIAN COMMUNIST PARTY AND SOVIET ECONOMIC EXPORTS DISAGREE ON CURRENCY DEVALUATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001100380006-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: April 28, 2003
• Sequence Number: 6
• Publication Date: November 25, 1947
• Content Type: IR

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This document is hereby regraded to
CONFIDENTIAL in accordance with the
'etter of 16 October 1978 from the
Director of Central Intelligence to the
Archivist of the United State3Q
Next Review Date: 2008
TELLIGENCE GROUP
INTELLIGENCE REPORT
25x1SUBJECT Austrian Communist Party and Soviet Economic
25X1 Exports Disagree on Currency Devaluation
DATE:
VW. 25 November 1947
PAGES 2
SUPPLEMENT
25X1
25X1
Rtrer#14
LSTATE
SOURCE
WAR
NAVY
JUSTICE
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1. On 21 Noveaber 1947, a meeting took place at USIA headquarters to discuss the
currency question. Yelevin and Dykhomirov represented USIAs and Kulagin and
an unidentified colonel represented the Econonics Division of the Soviet Com-
mission for Austria.
The unidentified colonel trap the Economice Divieion read a secret proposal
from the Central Committee of the Austrian Communist Party,sageesting that tee
Soviets defeat the currency devaluation law in the Allied Council, In case tfe
other Illiee do not agree to reject the law, the Russians are requested by le,a
Austrian 41P to uarn the Council that the new currency will not be acceptable in
the Soviet zone of Austria. This is expected either to produce the rejection of'
the bill or to introduce two currencies in Austria with the resultant trend to'a'd
partition.
3. The Austrian Communist Party also requested the Russians to follow this up hy refusing
to discuss the AusWan treaty at London on the grounds that; with CP Minister Karl
Altmann's resignations the Austrian Government is no longer the repreeentative of
a coalition. Consideretion of the treaty should be postponed until new elections
are held in Austria.
4. Malavin then expressed the views of USIA and of Wagin's Economic Section as
ft/lomat Commnist Party strategy is not necessarily identical with Soviet
strategy. He had heard that &dada felt it desirable to support the Austrian
currency devaluation because:
a. This would indicate to the world that the CP is not the tool of the Soviets
in Austria,
be xr the Russians refused to go along with the Austrian Government 'on the cur-
rency bill,nall would be lost in Austria". ?
'rialavin and Kelagin have calaed Moscow, advocating support of the Austrian
on the currency bill. Wavin indicated that the Russians have just under
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CEI1TRILL IZITELLIGZITGE GROUP
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I billion schillings :timid in Austria. They will attempt to covert them at the
1 for 2 rate; this,:lalavin and Kular,in favor acceptirr the 1 for 3
rate ,?rovided for in :Lustriml law. They axpoct the decision from 7!osco,::
a 'few days as to whether this 'Lan or the Communist -rorosal is accepted.
observes that Ualavin and Dykhomirov, who influenced 1;arav1n greatly in
thie matter, are fairly optimistic regarding the Moscow approval.
observee that Malavin appears to be honorable and is inclined to play mom, fairly
with the Austrian authorities than his predecessor Borisov. He desires to fit
USIA as much as possible into the Austrian legal structure. This is reflected
in the increased buying and selling in schillings at the present time. Thus
Male:yin's concepts are close to Kulaginfs and represent a departure fram the
previous USIA policy of ignoring or paying scent attention to Austrin requests
for USIA products. Whereas the previous policy had resulted in friction between
the Economics Division and USIA source comments that Malavin and KulapAn appear
to be on quite friendly terns, .
AD
14112AE"
Approved For Release 2003/08/07 : CIA-RDP82-00457R001100380006-6